Finance Minister Charlie McCreevy published the Finance Bill this afternoon. The Bill implements December's Budget measures, together with further tax reliefs in a number of areas.
The Minister announced new measures to encourage people to save money, a new tax regime for share options and a new scheme of tax relief for chariable donations.
Under the new savings scheme, for every £4 saved over a five year period, the Government will give the saver an extra £1.
Mr McCreevy said the new savings scheme was an innovative measure to encourage substantial, regular saving. The scheme will commence on 1 May 2001and will be open for one year. Savers will be asked to save for five years.
The Finance Bill also allows for tax relief on share options. The Minister said the change meant that, under certain approved schemes, employees will not have to pay income tax when exercising share options, and that the full gains would be liable to capital gains tax when shares are disposed of.
To qualify, at least 70% of share options in a scheme will have to be open to all employees with not more than 30% available for key employees.
Mr McCreevy said, in his opinion, this provides a good balance between the twin objectives of facilitating the participation by all employees in the fortunes of the company they work for and of helping companies retain staff vital to their success in a difficult national and international labour market.
Mr McCreevy also introduced tax relief on individual contributions to charities and other bodies such as educational establishments.
Speaking at the launch of the Finance Bill, Mr McCreevy said it will see the Government meet its target of a standard rate of income tax of 20% and a higher rate of 42% together with other significant reductions in tax for all taxpayers.
'This fulfils the commitment made to the Irish people in our Programme for Government', he said. 'Taxpayers have seen an unprecedented increase in their take-home pay in the last three years and I look forward to continuing this improvement in my next Budget.
